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Mortgage Calculator
Down Payment Estimator
Enter your income and estimated credit score in the form below to determine your down payment options.
Factors That Determine Your Maximum Purchase Price and Down Payment
A homebuyer's maximum purchase price is primarily determined by their debt-to-income ratio, credit score and available funds for the down payment. The debt-to-income ratio is the most important, because it indicates how much of their monthly income goes towards debt payments. Market and interest rates also play a crucial role in influencing the affordability of a home.
Debt-to-Income Ratio
Your Debt-to-Income (DTI) ratio shows what percentage of your gross monthly income goes toward debt payments, including your future mortgage. Lenders cap this ratio to limit how large your total monthly housing payment can be. That cap determines the maximum monthly mortgage payment you’re allowed, which then sets your maximum home price based on interest rate, taxes, insurance, and down payment. In short, higher income or lower existing debt allows you to qualify for a higher purchase price.
DTI Ratio Limits
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Conventional: 50%/50%
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FHA: 47%/57%
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VA: No official limits, determined by underwriting system.
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Non-QM: 50-55% (depending on the program)
Credit Score
Credit scores affect mainly your minimum down payment. For example, if your credit score is 580 or above, then your minimum down payment is 3.5%. If it's above 620 and you're a first time homebuyer, then the minimum down payment is 3%. Less than 580, then it's a 10% minimum down payment.
Your down payment in turn will then determine your maximum purchase price.
Available Funds
The more funds you have available, the higher the home price you can qualify for.
For example, if you have $20,000 in the bank and your down payment is 10%, then your maximum purchase price would be $200,000 (assuming that your closing cost is paid for by the home seller).
If you have $30,000 in the bank, then your maximum purchase price increases to $300,000.
